Over the weekend, senior U.S. officials engaged in trade talks with Chinese representatives in Geneva in an effort to finalize a potential trade deal. By early Monday, both nations issued a joint statement announcing that “the United States and China will each lower tariffs by 115% while retaining an additional 10% tariff,” per the White House.
Earlier this year, the U.S. enacted tariffs reaching 145% on Chinese imports as part of the administration’s strategy to address the persistent trade imbalance with other countries. These tariffs stemmed from President Trump’s April 2 announcement, dubbed “Liberation Day,” during which he introduced a broad reciprocal tariff policy targeting numerous nations, including China.
While most of the reciprocal tariffs were later suspended to allow room for trade negotiations, the measures against China remained in effect. In response, China implemented its own tariffs, including a 125% duty on American products.
Talks in Switzerland were led by Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, who met with Chinese trade officials. President Trump praised the outcome of the discussions, stating, “great progress” had been achieved.
“Many things discussed, much agreed to. A total reset negotiated in a friendly, but constructive, manner. We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE!!!” Trump posted on Truth Social on Saturday.
Fox Business reports:
Under the deal, reciprocal tariffs for both countries would be reduced by 115%. The U.S. will temporarily lower its tariffs on Chinese goods from 145% to 30%, and China will reduce its levies on American products from 125% to 10%.
Both the U.S. and China agreed to take the aforementioned actions by Wednesday.
The countries highlighted the “importance of a sustainable, long-term, and mutually beneficial economic and trade relationship.”
The two sides also agreed to “establish a mechanism” to continue discussions about economic and trade relations, which will be led by Chinese Vice Premier He Lifeng, U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, according to the joint statement.
